Hey friend,
The latest consumer spending numbers showed a meager 0.1% rise – compared to 0.7% the month before.
However, consumer sentiment data rebounded as people turned hopeful that Trump’s tariff policy could be more of a negotiating tactic than was initially expected.
The Fed’s preferred price gauge – the PCE – also saw a 0.1% monthly rise and 2.5% annual rise – the smallest in four years.
Separately, April also saw a 20% dip in imports – showing that tariffs are still nevertheless having an effect.
The Daily Direction
Note: Indexes closed lower yesterday and opened lower this morning as well – but movement throughout the day has been choppy. No change in index directions.
The Daily Nugget
Every pullback feels unique until you zoom out.
When you’re in it, every pullback feels different.
And it’s somewhat true – the headlines, the narrative… they will all indeed be different.
But when you zoom out and look at the price action…
At the charts that tell you exactly how the battle between buyers and sellers are playing out…
Suddenly, things don’t look so different.
Suddenly, the pullback looks like what so many others have…
Weak hands capitulating after a strong rally…
Which is usually followed by the rally continuing upwards.
When you distill it down to the essence of trading – the tug-of-war between buyers and sellers…
The picture often becomes much clearer…
And so do your next steps.
Enjoy the weekend.
The Traders Agency Team
